Dominican Republic

DOMINICAN REPUBLIC

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS DOMINICANS
DEPENDENCIES
BIBLIOGRAPHY

Dominican Republic

Republica Dominicana

CAPITAL: Santo Domingo

FLAG: The national flag, adopted in 1844, consists of a white cross superimposed on a field of four rectangles, the upper left and lower right in blue, the upper right and lower left in red.

ANTHEM: Himno Nacional, beginning "Quisqueyanos valientes, alcemos nuestro canto" ("Valiant Dominicans, let us raise our song").

MONETARY UNIT: The Dominican peso (rd$) of 100 centavos is a paper currency. There are coins of 1, 5, 10, 25, and 50 centavos and 1 peso, and notes of 1, 5, 10, 20, 50, 100, 500, and 1,000 pesos. rd$1 = us$0.03287 (or us$1 = rd$30.42) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but US and Spanish weights are widely used in commercial transactions.

HOLIDAYS: New Year's Day, 1 January; Epiphany, 6 January; Altagracia Day, 21 January; Duarte Day, 26 January; Independence Day, 27 February; Labor Day, 1 May; Restoration of Independence, 16 August; Day of Our Lady of Las Mercedes, 24 September; All Saints' Day, 1 November; Christmas, 25 December. Movable religious holidays include Good Friday and Corpus Christi.

TIME: Eastern Daylight Savings Time is maintained throughout the year; 8 am = noon GMT.

LOCATION, SIZE, AND EXTENT

The Dominican Republic occupies the eastern two-thirds of the island of Hispaniola (Española) and includes the islands of Beata, Catalina, Saona, Alto Velo, and Catalinita in the Caribbean Sea, and several islets in the Atlantic Ocean. It has an area of 48,730 sq km (18,815 sq mi), with a length of 386 km (240 mi) e–w, extending from Cape Engaño to the Haitian border, and a width of 261 km (162 mi) n–s, extending from Cape Isabela to Cape Beata. Comparatively, the area occupied by the Dominican Republic is slightly more than twice the size of the state of New Hampshire. Bounded on the n by the Atlantic Ocean, on the e by the Mona Passage (which separates it from Puerto Rico), on the s by the Caribbean Sea, and on the w by Haiti, the Dominican Republic has a total boundary length of 1,648 km (890 mi), of which only 360 km (194 mi) is the length of the land boundary with Haiti.

The Dominican Republic's capital city, Santo Domingo, is located on its southern coast.

TOPOGRAPHY

The Dominican Republic is generally mountainous, with deserts in the extreme western regions. The principal mountain range, the Central Cordillera, running from east to west and extensively pine-forested, bisects the republic. Between the Central Cordillera and the Northern Cordillera (and their associated plains) lies the famous Cibao (La Vega Real) Valley (225 km/140 mi long, with an average width of 23 km/14 mi), noted for the excellent quality of its soil. Fertile valleys also abound in the central and eastern areas. The country contains both the highest mountain in the West Indies, Mt. Duarte (Pico Duarte, 3,175 m/10,417 ft), and the lowest-lying lake, Lake Enriquillo (46 m/151 ft below sea level). The Yaque del Norte, the Yaque del Sur, and the Yuna are the principal rivers.

CLIMATE

Climate and rainfall vary with region and altitude. Generally, however, average minimum and maximum temperatures range from 18–29°c (64–84°f) in the winter and from 23–35°c (73–95°f) in the summer. The coastal plain has an annual mean temperature of 26°c (79°f), while in the Central Cordillera the climate is temperate and the mean is 20°c (68°f). Rainfall varies from an annual average of 135 cm (53 in) in the eastern regions, with an extreme of 208 cm (82 in) in the northeast, to a mean of 43 cm (17 in) in the western areas. The rainy season generally extends from June to November and the dry season from December to May. The nation lies within the hurricane belt, and tropical storms constitute a major weather hazard.

FLORA AND FAUNA

Plants and animal life vary by region. Dense rain forests are common in the wetter areas; scrub woodland thrives along the drier slopes; and savanna vegetation is found on the open plains. Dominican mahogany and highly resinous pine trees grow in the high mountains. The rare hutia (a small rodent) and herds of wild boar are found in the mountainous areas. Ducks, doves, and several varieties of pigeons are seasonal visitors. Lake Enriquillo is the natural habitat of large flocks of flamingos. Spanish mackerel, mullet, bonito, and yellowtail snapper are found in the surrounding waters. As of 2002, there were at least 20 species of mammals, 79 species of birds, and over 5.600 species of plants throughout the country.

ENVIRONMENT

The main agencies responsible for environmental protection are the Department of National Parks and the Department of State for Agriculture. The Dominican Republic has environmental problems in the areas of deforestation, water supply, and soil erosion, the latter of which also damages the nation's coral reefs. United Nations (UN) sources report that, as of 1993, the nation was losing 20,000 hectares per year of its forest lands largely due to commercial interests. The felling of trees was prohibited in 1967 to remedy the ill effects of indiscriminate cutting by commercial producers and farmers and the destruction by fire of large stands of timber. However, many farmers continue to cut trees surreptitiously to make more land available for cultivation. Soil erosion results from a combination of rainfall and the use of land in mountainous areas. The country has 21 cu km of renewable water resources with 89% used for farming. About 97% of the population has access to pure drinking water. Water pollution results from the effects of mining along with industrial and agricultural sources.

In 2003, about 51.9% of the total land area was legally protected. Lago Enriquillo is a Ramsar wetland site. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 5 types of mammals, 16 species of birds, 10 types of reptiles, 31 species of amphibians, 10 species of fish, 2 species of invertebrates, and 30 species of plants. Endangered species in the Dominican Republic include the tundra peregrine falcon, Haitian solenodon, three species of sea turtle (green sea, hawksbill, and leatherback), and American crocodile. The imposter hutia, the Hispaniolan edible rat, and Marcano's solenodon have become extinct.

POPULATION

The population of Dominican Republic in 2005 was estimated by the United Nations (UN) at 8,862,000, which placed it at number 86 in population among the 193 nations of the world. In 2005, approximately 5% of the population was over 65 years of age, with another 34% of the population under 15 years of age. There were 102 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.7%, a rate the government viewed as too high. The government was initiating programs to address the high rate of adolescent fertility. The projected population for the year 2025 was 11,038,000. The population density was 182 per sq km (471 per sq mi). The southern coastal plains and the Cibao Valley are the most densely populated areas of the country.

The UN estimated that 64% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.99%. The capital city, Santo Domingo, had a population of 1,865,000 in that year. Other important cities are Santiago de los Caballeros, La Romana, San Pedro de Macorís, San Francisco de Macorís, and Concepción de la Vega.

MIGRATION

Four overseas immigration movements took place 1930–60: approximately 5,000 refugees from the Spanish Civil War in the late 1930s; a Jewish refugee group, which arrived in 1940; a continuous flow of Japanese, mainly farmers, since 1950; and 600 Hungarian refugees invited by the government in 1957. These are dwarfed, however, by the influx of Haitians, some seasonal, others permanent.

An estimated 35,000 Haitians entered the Dominican Republic after the military coup that overthrew Haiti's president, Jean-Bertrand Aristide, in September 1991. By May 1997, 20,000 Haitians had returned to their homeland, voluntarily or by deportation. The majority of Haitian refugees live outside the capital, Santo Domingo. The Dominican Republic government initiated a program to deport illegal migrants back to Haiti. However, this program does not affect recognized refugees or asylum seekers, as they receive temporary residence permits. In October 2005, Migration News reported that estimates of the number of Haitians in the Dominican Republic in 2005 ranged from 300,000 to 1.6 million. A census of Haitians was planned to determine how they obtained illegal Dominican identity cards. The Dominican Republic began to issue identity cards to 300,000 Dominicans living illegally in Puerto Rico.

Emigration became significant for the first time during the 1960s, when 93,300 Dominicans legally entered the United States; during 1971–80, the figure rose to 148,100, and during 1981–85, it was 104,800. In 1990 there were 357,000 Dominican-born people living in the United States, mostly along the eastern seaboard. This census total may have been an undercount, for estimates of the Dominican population in the United States ranged as high as 1,000,000, including 200,000 in Puerto Rico. The total of remittances in 2001 was $1,982,000, or 9.3% of GDP. By the end of 2004, 99 Dominicans had applied to Canada for asylum.

The net migration rate estimated in 2005 was -3.2 migrants per 1,000 population, almost equivalent to the rate of -3.03 migrants per 1,000 population in 1999.

ETHNIC GROUPS

Ethnic divisions have been estimated at 16% European, 11% African, and 73% mixed. Descendants of early Spanish settlers and of black slaves from West Africa constitute the two main racial strains.

LANGUAGES

Spanish is the official language. Some English is spoken in the capital, and a Creole dialect is used along the Haitian border.

RELIGIONS

According to a 1997 population survey, professing Roman Catholics represented an estimated 68.1% of the population and Protestants, including Baptists, Jehovah's Witnesses, Methodists, Mormons, Seventh-Day Adventists, and others accounted for another 11%. However, the Catholic Church has claimed that their membership accounts for about 87% of the population and Evangelical Christians have claimed up to 25% of the population as members. As many as 20% of the population claims no religious affiliation whatsoever. It is believed that some Catholics may practice a combination of Catholicism and tradition Afro-Caribbean beliefs and customs. Other religions include Judaism, Islam, and Buddhism.

Religious freedom is protected by law, and there is no state religion. However, the Roman Catholic Church, which signed a concordat with the government in 1954, is extended special privileges not granted to other religions. Religious groups are required to register with the government for legal tax-exempt status. Roman Catholic marriages are the only religious marriages that are automatically recognized by the state. Civil unions are required for other faiths.

TRANSPORTATION

The national highway system is the dominant means of inland public transportation. Three main highways emanate from Santo Domingo: the Carretera Sánchez (connecting with Elias Piña on the Haitian border), the Carretera Mella (to Higüey in the extreme southeast), and the Carretera Duarte (to Monte Cristi on the northwest coast). In 2002 there were 12,600 km (7,830 mi) of roadways, of which 6,224 km (3,868 mi) were paved. In 2003, a total of 171,200 passenger cars and 207,000 commercial vehicles were licensed.

In 2004, the Dominican Republic had 1,743 km (1,084 mi) of standard and narrow gauge railroad. Of that total, 1,226 km (763 mi) were operated by sugar companies, and consisted of varying types of narrow gauge track. In that same year, there were 375 km (233 mi) of standard gauge track in operation, and another 142 km (88 mi) of narrow gauge railroad not affiliated with the sugar companies operated that year.

The Santo Domingo, Andrés, and Haina harbors, all in the Santo Domingo area, handle the vast majority of imports. Other large ports include Puerto Plata in the northwest; La Romana, Boca Chica, and San Pedro de Macorís in the southeast; and Barahona in the southwest. The Dominican merchant fleet had three cargo ship of 1,000 GRT or over, totaling 11,230 GRT in 2005.

In 2004, there were an estimated 31 airports, 13 of which had paved runways as of 2005. Dominicana de Aviación provides international service from Las Americas International Airport at Punta Caucedo, 29 km (18 mi) east of Santo Domingo. Cargo and mail service to the US mainland, Puerto Rico, and the US Virgin Islands is provided by Aerolíneas Argo. Alas del Caribe provides domestic passenger service, as does Aerovías Quisqueyanas. There are also six other international airports at Puerto Plata, Punt Cana, Santiago, Samana, Barahona, a new airport in Santo Domingo, and La Romana. In 1997 (the latest year for which data is available), about 34,000 passengers were carried on regularly scheduled domestic and international flights.

HISTORY

The eastern part of the island of Hispaniola was originally known as Quisqueya, meaning "mother of all lands." It was first settled by the nomadic and warlike Carib Amerindians and later by the agricultural and peace-loving Arawaks. Christopher Columbus made the European discovery of the island and claimed it for Spain in 1492. Santo Domingo, the oldest city in the New World, was founded four years later by Bartholomew Columbus, the explorer's brother. By 1517, Hispaniola had become the springboard for Spanish conquest of the Caribbean and of the American mainland. As with other Caribbean islands, the Amerindian population dwindled, and was replaced by African slaves.

The importance of Hispaniola waned during the 16th and 17th centuries. In 1697, by the Treaty of Ryswick, Spain was forced to recognize French dominion over the western third of the island, an area now known as Haiti. In 1795, under the Treaty of Basel, Spain ceded to France the eastern two-thirds of the island, which by then had been renamed Santo Domingo. The island then came under the rule of the rebellious ex-slave Toussaint L'Ouverture. After Haiti received independence in 1804, the French retained the rest of the island until 1809. After a brief attempt at independence, the Dominicans fell under the control of Spain, which regained the eastern section of the island under the Treaty of Paris (1814).

In 1821, the Dominicans, led by José Múñez de Cáceres, proclaimed their independence. The Dominicans sought to become part of Simón Bolívar's newly independent Republic of Gran Colombia, but in 1822, the Haitians conquered the entire island. For 22 years, the Haitians ruled with an iron fist. A civil war in 1843 gave the Dominicans the opportunity to try again for independence, and, under Juan Pablo Duarte, they established the Dominican Republic as an independent state.

Between 1844 and 1916, the new republic alternated among personalist leaders, who sought foreign protection against Haiti. The most prominent among these were Pedro Santana and Buenaventura Baez, who dominated Dominican politics until 1882. Santana restored the Dominican Republic to the Spanish Empire during 1861–65. Baez in 1869 negotiated a treaty providing for US annexation, but the US Senate refused to ratify it.

After a 17-year dictatorship, the Dominican Republic entered a turbulent period characterized by general political instability and increasing debt to US interests. In 1905, US president Theodore Roosevelt appointed an American receiver of Dominican customs, and a subsequent treaty provided for repayment of the debt. This first application of the "Roosevelt Corollary" to the Monroe Doctrine was followed in 1916 by the US establishment of a military government under Marine Capt. H. S. Knapp. It ruled the Dominican Republic until 12 July 1924, when sovereignty was restored. US customs control continued until 1941.

In 1930, Rafael Leonidas Trujillo Molina was elected president. For the next 31 years, he ruled the Dominican Republic either directly or indirectly. Trujillo had himself reelected in 1934, 1940, and 1947, then arranged for his brother to become president in 1952 and 1957, and then installed Joaquín Balaguer in 1960. Under Trujillo, the Dominican Republic achieved some economic progress, removing its foreign debt. But Trujillo brutally suppressed fundamental human rights. Only one party was allowed, the press was totally controlled, and constant purges weeded out all but his most servile supporters. His most dubious achievements were a result of his own megalomania. In the capital city of Santo Domingo, which he renamed Ciudad Trujillo (Trujillo City), there were 1,870 monuments to Trujillo, who gave himself the title "The Benefactor of the Fatherland." He also amassed a personal fortune estimated at $900–$1,500 million.

Trujillo was assassinated on 30 May 1961. In July 1961, the Balaguer cabinet resigned as street rioting broke out. The opposition agreed to an interim coalition government under Balaguer that September, with Rafael Trujillo, Jr., as head of the armed forces. In November, the United States sent warships just outside Dominican waters to prevent the armed forces chief and his two uncles from a staging a rumored coup. They went into exile immediately.

After rule by an interim Council of State, Juan Bosch of the Dominican Revolutionary Party was elected president in 1962. He assumed office in February 1963 but remained in power for only seven months, during which time very little of the promised social and economic reform could be accomplished. The military, which overthrew Bosch in September 1963, proceeded to install a three-man civilian junta, called the Triumvirate, which was in turn overthrown by the supporters of Juan Bosch in April 1965. With anarchy threatening—and, according to US allegations, Communists deeply involved in the pro-Bosch insurrection—the United States sent 23,000 troops into the Dominican Republic, ostensibly to protect the lives of US citizens. Within weeks, the OAS had set up an Inter-America Peace Force in the country. This controversial set of arrangements eventually brought order to the country. After the 1966 elections, all US and OAS troops left the island.

In the general elections of June 1966, Balaguer, returned from exile, campaigned vigorously throughout the country, while Bosch, his chief opponent, remained home, apparently fearful of an attempt on his life. Balaguer won with 57.2% of the vote. Four years later, Balaguer ran essentially without opposition, as most parties withdrew from the campaign in response to rising political violence.

Events in 1974 followed a similar pattern. Two days before the election, an opposition coalition announced their withdrawal from the contest. The opposition's principal candidate, Silvestre Antonio Guzmán Fernández of the PRD (Dominican Revolutionary Party), called for general abstention from the election, charging Balaguer with fraudulent practices. Only one candidate—Adm. Luis Homero Lajara Burgos, a former chief of police under Trujillo—remained in the race. The results gave Balaguer an overwhelming majority, with 924,779 votes to Lajara Burgos's 105,320.

Following the 1974 elections, the opposition coalition, an amalgam of widely divergent political elements, decided to disperse in anticipation of the 1978 campaign. Despite their lack of representation in the legislature and in municipal councils as a result of the election boycott, the major opposition parties, aided by a large degree of press freedom, remained active and vocal. In the 1978 elections, the main presidential candidates were Balaguer and the PRD's Guzmán. Guzmán won with a 158,000-vote plurality, and his party gained a majority in the Chamber of Deputies. Numerous other parties, including the newly legalized Dominican Communist Party, participated in the elections. A right-wing military attempt to prevent Guzmán from assuming office was foiled, partly because of US government pressure.

During Guzmán's term, political prisoners were freed, press censorship was practically abolished, and political parties engaged in open activity. At the same time, however, there were mounting economic difficulties, aggravated by two hurricanes in 1979, which together left 1,300 people dead, 500 missing, and 100,000 homeless. In May 1982, a left-wing PRD senator, Salvador Jorge Blanco, was elected president. On 4 July, six weeks before his term was due to expire, Guzmán committed suicide, after several close associates were accused of fraud. Power was transferred peacefully to Vice President Jacobo Majluta Azar, and in August 1982, to Blanco.

Whatever plans President Blanco may have had were soon overtaken by the country's burgeoning foreign debt. Blanco turned to the IMF for assistance. The resultant restrictive economic policy raised production costs and reduced industrial output. A cut in the US sugar quota, as well as a generally low world price for the commodity, was a further blow to the economy.

In presidential elections held 16 May 1986, former president Joaquín Balaguer was returned to office with 857,942 votes (41.6%). Jacob Majluta Azar of the PRD took 814,716 votes (39.5%), and Juan Bosch of the PLD (Dominican Liberation Party) won 379,269 votes (18.4%). Balaguer embarked on an ambitious program of public works that created employment for nearly 100,000 people. But by 1988, inflation was on the rise, and the peso had become unstable. Nationwide strikes in 1989 suggested that the country was headed for further crisis.

In 1990, Balaguer stood for reelection, and won a narrow, hotly contested victory amid claims of fraud by the opposition. Officially, Balaguer received 35.7% of the vote to Juan Bosch's 34.4%. Balaguer was inaugurated, but immediately created controversy by suggesting a set of IMF-style liberal reforms. This brought national strikes in August and November of 1990, and demands for resignation. In the Chamber of Deputies, where Bosch's PLD held a plurality, Balaguer faced serious opposition.

The results of a large portion of the May 1994 presidential vote, won once again by Balaguer, were voided by the electoral board, and Balaguer agreed to shorten his term to two years, scheduling a new election for May 1996. In that contest, no candidate won a majority, but a second round of voting on 30 June produced a victory for Leonel Fernández of the PLD, who took office in August.

Although economic reforms introduced in late 1994 helped improve growth and lower inflation, unemployment remained high, spurring substantial emigration to the United States and Puerto Rico. In March and June 1995, riots occurred in response to unauthorized increases in public transportation fares. During his four years in office, Fernández successfully privatized several state-owned enterprises and utilities. The economy expanded at an average of 5% annually, unemployment fell, and inflation was low. Fernández successfully fought government corruption and consolidated democratic institutions. In spite of his popularity, however, he was constitutionally prevented from seeking reelection in the polling scheduled for May 2000. PRD's Rafael Hipólito Mejía won the May 2000 election after PLD's Danilo Medina withdrew from the runoff. Mejía had obtained 49.5% of the vote in the first round and was expected to easily defeat Medina in the runoff. Mejía took office promising to increase social spending but vowing to maintain the macroeconomic policies adopted by Fernández that helped that country become one of the fastest growing nations in Latin America in the late 1990s. In July 2002, Joaquín Balaguer died at the age of 95.

Deadly clashes between police and protestors broke out in November 2003 during demonstrations held to protest higher prices and cuts in electricity. In January 2004, further protests took place, demonstrating against the government's economic policies; five people were killed.

In May 2004, Mejía admitted defeat in presidential elections that were won by Leonel Fernández with 57.1% of the vote. That month, severe flooding took place in the southwest and in parts of neighboring Haiti; more than 2,000 people died or disappeared. The next presidential election was scheduled for May 2008.

GOVERNMENT

The constitution of 28 November 1966 established a unitary republic consisting of 26 (later increased to 31) provinces and a single National District. The government is effectively controlled by the chief executive, a president directly elected for a four-year term and eligible for reelection. Cabinet ministers (called secretaries of state) are appointed by the president, who must be at least 30 years of age.

The National Congress consists of a Senate, composed of 32 members, and a 150-member Chamber of Deputies, apportioned on the basis of population. Members of the two houses are elected for four-year terms and must be at least 25 years of age. Bills for legislative action may be introduced by the president, by the National Congress, or by the Supreme Court. Voting is by universal suffrage of citizens 18 years or older, although younger citizens, if married, may also vote. Members of the armed forces and national police may not vote. Presidential and congressional elections are not held simultaneously.

POLITICAL PARTIES

Although the Dominican Republic has three major parties and more than ten minor parties, two men, Joaquín Balaguer Ricardo and Juan Bosch Gavino, dominated its political system for decades, but starting in 1996 a new cadre of politicians emerged.

Joaquín Balaguer, a former president under Trujillo, was elected to the presidency six times, the last time in 1994. He died in 2002. He founded the Social Christian Reform Party (Partido Reformista Social Christiano—PRSC) while living in exile in New York in 1963. The party is tied to the Christian Democratic political movement, and relies principally on peasant and middle-class support. As of 2005, the PRSD held 1 of 32 Senate seats and 36 of 150 seats in the Chamber of Deputies.

Juan Bosch, who held the presidency for seven months in 1963, remained a major voice in Dominican politics into the 1990s. Bosch founded the Dominican Revolutionary Party (Partido Revolucionario Dominicano—PRD) in 1939. After withdrawing from the PRD, Bosch created his own party, the Dominican Liberation Party (Partido de la Liberación Dominicana—PLD) in 1973. In the second round of voting in the 1996 presidential elections, the PLD's Leonel Fernández was elected president with just over 51% of the vote. In May 2004, Fernández defeated incumbent Rafael Hipólito Mejía and was returned to office as president with 57.1% of the vote.

The PRD continued on without Bosch, and with far more success than Bosch was ever able to achieve. The PRD won the presidential elections of 1978 and 1982, although it was unable to achieve a majority in either house of congress in 1982. Headed by Vicente Sanchez Baret, the PRD has an association with Socialist International, and a "Eurosocialist" ideological thrust of moderate economic and social change. The party draws support from landless peasants and urban workers. Rafael Hipólito Mejía emerged as the PRD leader and easily won the 2000 presidential election. The PRD went on to win the 2002 parliamentary elections with 41.9% of the vote. The PRD held 29 out of the 32 seats in the Senate and also commanded a majority control in the Chamber of Deputies with 73 out of the 150 seats. The next parliamentary elections were scheduled for May 2006.

The Independent Revolutionary Party (PRI) was the vehicle for Jacobo Majluta Azar, who served as president briefly in 1982. A former PRD member, Majluta received only 7% of the vote in 1990. As of 2006 the party held no seats in the Chamber of Deputies or the Senate.

LOCAL GOVERNMENT

The Dominican Republic is divided into 31 provinces and a National District, encompassing Santo Domingo. The provinces are further subdivided into municipal districts and municipalities. The president appoints the provincial governors. Municipal districts must have at least 5,000 inhabitants and produce sufficient revenue to finance their own administrative agencies. The municipalities and the National District are governed by mayors and municipal councils of at least five members, elected by popular vote.

JUDICIAL SYSTEM

The judicial system is headed by a Supreme Court with 16 judges, which rules on constitutional questions and serves in the last instance on appeals. Supreme Court judges are appointed by the National Judicial Council (consisting of the president, the leaders of both chambers of the National Congress, the president of the Supreme Court, and an opposition or nongoverning party member). The National Judicial Council appoints the judges of the lower courts and of the special courts. All judges are required to hold a law degree.

There are 31 provincial courts, as well as one court of first instance in the National District. The judicial system also includes one judge or court of justice for each of the country's 124 municipal districts, three courts of appeal, a court of accounts, and a land tribunal. There are also justices of the peace. The death penalty was abolished in 1924. Although the constitution provides for an independent judiciary, in practice the executive branch as well as public and private entities exert pressures on the courts. The constitution guarantees public trials, and indigent defendants have a right to a court-appointed attorney at state expense. Judicial reforms were being undertaken in the early 2000s.

Military courts try military personnel charged with extrajudicial killings.

ARMED FORCES

Active armed forces personnel in the Dominican Republic numbered 24,500 in 2005. The Army had 15,000 active personnel and was organized into six infantry brigades, one (each) armored, special forces, mountain infantry, artillery, engineer and Presidential Guard battalions. Equipment included 12 light tanks, 28 armored personnel carriers and over 56 artillery pieces. The Air Force has 5,500 personnel, whose equipment included 6 combat capable aircraft that consisted of fighter ground attack aircraft. The Navy had 4,000 personnel. Major naval units consisted of 15 coastal defense and 4 logistics/support ships. The country's paramilitary force consisted of the 15,000 member National Police. In 2005, the armed forces were allocated $190 million.

INTERNATIONAL COOPERATION

The Dominican Republic is a charter member of the UN, having joined on 24 October 1945, and participates in the ECLAC, as well as other nonregional specialized agencies. The nation is also a member of the WTO, the ACP Group, G-77, the Inter-American Development Bank, the Latin American Economic System (LAES), the OAS, the Association of Caribbean States (ACS), and the Río Group. The country has observer status in CARICOM and the Latin American Integration Association (LAIA). In 2004, the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the United States signed the US–Central America Free Trade Agreement (CAFTA). The agreement must be ratified by all participating countries before it enters into force.

The Dominican Republic is a member of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL) and an observer in the Nonaligned Movement. The country is a signatory of the 1947 Río Treaty, an inter-American security agreement. In environmental cooperation, the Dominican Republic is part of the Basel Convention, the Convention on Biological Diversity, CITES, the London Convention, the Kyoto Protocol, the Montréal Protocol, MARPOL, and the Nuclear Test Ban Treaty, and the UN Conventions on Climate Change and Desertification.

ECONOMY

Traditionally, the economy of the Dominican Republic was based primarily on agriculture, with sugar, coffee, and tobacco as the main export crops, but the services sector has become the largest employer (about 60% of the labor force), led by tourism. Between 1968 and 1974, the average annual growth of GDP was 10.5%. The improved political climate during that period stimulated public and private investment, both domestic and foreign, and the development of tourism. A sugar boom also contributed to rapid growth. During the second half of the 1970s, the growth rate slowed, in part because of rising oil prices and a weakening of the sugar market; damage from two 1979 hurricanes cost an estimated $1 billion. The GDP declined by 2.2% in 1985, reflecting low world prices for the country's exports, declining US sugar quotas, and IMF-imposed austerity. Unemployment soared to 26%, and inflation reached 37.5% the same year. The economy recovered somewhat in 1986 and 1987, due to the government's capital spending program and an increase in foreign investment.

The Dominican Republic had one of the fastest growing economies in the world in the 1990s, owing much of its success to the adoption of sound macroeconomic policies in the early 1990s and greater opening to foreign investment. Although GDP declined in both 1990 and 1991, in 1992 real GDP increased by 7%. The high inflation prevailing in the late 1980s and early 1990s was finally tamed in 1993 as a result of an austerity program that brought the annual inflation rate from 53.9% in 1992 to only 4.6% in 1993. However, very tight monetary and fiscal policies caused the economy to decline by 1.7% in 1994. Boosted by the continuous expansion of tourism, mining, and the export processing zones, the annual average growth rate 1995–2001 was 7.7%, despite Hurricane Georges in September 1998, which left about 300 dead, hundreds of thousands homeless, and did an estimated $1.3 billion worth of damage (8% of GDP). The rate of inflation fell from 14.3% in 1994 to 6% in 1999, but in 2000 had increased to 9%. Fiscal measures were introduced in 2001 to reduce the inflation rate in the booming economy, but this coincided with the decline in the external economy, and also became a factor in reducing the country's GDP growth rate to 2.7% in 2001, down from 7.6% in 2000 (the highest in Latin America).

In 2003, services accounted for over half of GDP (57.8%) and agriculture accounted for only 10.7%, down from about 20% in the mid-1990s. Tourism (the leading foreign exchange earner), telecommunications, and free-trade-zone manufacturing remain increasingly important industries. The Dominican Republic is among the top ten developing countries in terms of the amount of remittances received from abroad. In 2001 these totaled about $2 billion, double the rate in the mid-1990s. The economy's other major engine of growth has been its free trade zones. In 2000, net exports from the free trade aones were $1.7 billion, up from $1.2 billion in 1997, whereas traditional exports had fallen to $.97 billion from $1 billion. Both sectors declined in 2002, and in 2003 growth turned negative in (-0.4%), mainly due to the effects of a major bank fraud and limited growth in the US economy. The Dominican Republic continued to go through difficult economic times due in large part to bank frauds discovered in 2003 in which losses totaled more than 20% of GDP. In 2004 the real growth rate was only 1.7%.

INCOME

The US Central Intelligence Agency (CIA) reported that in 2005 the Dominican Republic's gross domestic product (GDP) was estimated at $58.5 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $6,500. The annual growth rate of GDP was estimated at 4.1%. The average inflation rate in 2005 was 4.3%. It was estimated that agriculture accounted for 10.7% of GDP, industry 31.5%, and services 57.8%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $2.325 billion or about $266 per capita and accounted for approximately 14.1% of GDP. Foreign aid receipts amounted to $69 million and accounted for approximately 0.5% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Dominican Republic totaled $11.98 billion or about $1,371 per capita based on a GDP of $16.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 4.1%. It was estimated that in 2002 about 25% of the population had incomes below the poverty line.

LABOR

The labor force in 2002 (the latest year for which data was available) consisted of about 2.6 million persons. For that same year, 15.9% were engaged in agriculture, 21.1% in industry, and 63% in services and government. Unemployment is a persistent problem, affecting an estimated 17% of the workforce in 2005. Underemployment was also widespread.

The labor code provides comprehensive protection for workers, but as of 2005, only about 8% of the Dominican workforce was unionized. Employees in nonessential public services are provided with the right to strike. The labor code also specifies steps for union registration, entering into collective bargaining pacts, and calling strikes. While it is illegal for companies to dismiss union members and organizers, enforcement has been inconsistant and there have been reports of intimidation of union organizers and members.

The standard work week is set at 44 hours with an eight hour day. The law also provides for a rest time each week of 36 uninterrupted hours. The labor code prohibits employment of children under 14. However, economic and social conditions have forced many children to work to help support their families. The minimum wage was $119 per month in the nation's free trade zones (FTZs) and $164 per month outside the FTZs in 2005. However, these amounts were insufficient to support a worker and a family. Occupational health standards are not enforced and working conditions, especially on sugar plantations, can be particularly harsh.

AGRICULTURE

With almost 33% of the total land area suitable for crop production and about 17% of the labor force engaged in farming, agriculture remains the primary occupation, accounting for 11% of GDP in 2003. Value of agricultural output grew at an average annual rate of 7.1% during 1968–73, but since 1975 the sector has been hampered by droughts (1975, 1977, and 1979), hurricanes (in 1979 and 1980), and slumping world prices and quota allocations for sugar (since 1985). In 1999, agricultural production was 0.4% higher than during 1989–91. The fertile Cibao Valley is the main agricultural center. In 2003, arable land totaled 1,546,000 hectares (3,944,000 acres).

After Cuba, the Dominican Republic is the second-largest Caribbean producer of sugarcane, the nation's most important commercial crop. The State Sugar Council (Consejo Estatal de Azúcar—CEA) operates 12 sugar mills and accounts for more than half of total production. Other large producers are the privately owned Vicini, with three mills, and Gulf and Western, whose largest mill is at La Romana. In 2004, sugarcane production was 5.2 million tons, down from an average of 7.1 million tons during 1989–1991. Output of sugar has declined since 1982, and land is gradually being taken out of sugar production and switched to food crops. Production of raw sugar rose from 636,000 tons in 1990 to 813,000 tons in 1997 but fell to 508,000 tons in 2004/05. The Dominican Republic has the largest single allocation of the US sugar import quota.

Another leading cash crop is coffee. Part of the crop was destroyed by hurricanes in 1979 and 1980, and 1979–80 production was only 670,000 bags (40,200 tons). Although production was usually about 57,000–59,000 tons annually in the 1980s, the acreage harvested declined from 157,000 hectares (388,000 acres) in the early 1980s to 139,000 hectares (363,000 acres) by the late 1990s, indicating a greater yield per acre. Coffee production in 2004 was estimated at 45,000 tons; exports of coffee in 2004 generated $5.8 million. Cocoa and tobacco are also grown for export. In 2004, production of cocoa beans was 45,000 tons and of tobacco, 18,000 tons. Banana production in 2004 was 480,000 tons. Production of other crops in 2004 (in thousands of tons) included rice, 640; coconuts, 181; cassava, 105; tomatoes, 154; pulses, 69; dry beans, 26; eggplants, 7; and peanuts, 3.

Under a land reform program initiated in 1962, a total of 178,602 hectares (441,333 acres) had been distributed to 36,480 farmers by the end of 1977. The government encourages fuller use of the nation's arable land through extensive land-clearing and irrigation projects and diversification of crops. Some mechanization has taken place on the large plantations, but primitive techniques are generally used. In 1973, the first stage of the Integrated Agricultural and Livestock Development Plan was initiated, calling for an investment of $38.1 million, to be financed by the IDB. The plan was designed to provide credit and technical aid to 45,000 small farmers, improve side roads, and study the country's water resources. The second stage of the plan, in the early 1980s, included extension of farm credits, reforestation, manpower training for irrigation projects, and reorganization of the Dominican Agrarian Institute.

Agricultural exports, mostly in the form of sugar, coffee, cocoa, tobacco, and cigars generated $646 million in 2004, or 48.4% of total exports. The government and private sector are emphasizing diversification to nontraditional agricultural crops such as fresh fruits, vegetables, and flowers.

ANIMAL HUSBANDRY

In 2005, Dominican livestock included 190,000 goats and 123,000 sheep. There were also about 2.2 million head of cattle, 60% for beef and 40% for dairy. The hog population, decimated by African swine fever in the late 1970s, decreased from 400,000 in 1978 to 20,000 in 1979; by 2005, however, it had recovered to 580,000. Poultry is the main meat source because it is cheaper than beef or pork. Poultry production relies on imports of feed grain from the United States. In 2005, 185,000 tons of poultry meat were produced, along with 78,000 tons of beef and 690,000 tons of milk.

FISHING

Although the waters surrounding the Dominican Republic abound with fish, the fishing industry is comparatively undeveloped, and fish for local consumption are imported. In 2003, the total marine catch was 17,490 tons, down from 19,048 tons in 1994. Marlin, barracuda, kingfish, mackerel, tuna, sailfish, and tarpon are found in the Monte Cristi Bank and Samaná Bay, which also supports bonito, snapper, and American grouper. The inland catch amounted to 4,161 tons in 2003.

FORESTRY

About 28.4% of the total land area consisted of forests and woodlands in 2000. Roundwood production in 2003 totaled 562,000 cu m (19.8 million cu ft). Virtually all the timber cut is for land clearing and fuel.

MINING

The Dominican Republic in 2003, was a regional producer of cement, steel, ferronickel, salt and gypsum, while the production of sand and gravel, limestone and marble were produced for the domestic market. Also, modest amounts of pectolite (larimar), amber, and limestone are produced by six artisanal mining associations. While, mining activity in the Dominican Republic has been centered on gold exploration as of 2003, there was no recorded gold production since 1999, when 651 kg were produced. In that same year, the production of gold and silver were suspended. Silver output in 1999 totaled 3,140 kg. Nickel production (mine output, laterite ore) in 2003 totaled 45,400 metric tons, up from 38,859 metric tons in 2002. The only nickel producer was Falconbridge Dominicana, an 85% Canadian-owned company.

The country was one of the few sources of amber in the Western Hemisphere. Salt Mountain, a 16 km block of almost solid salt west of Barahona, was the world's largest known salt deposit. There were also large deposits of gypsum near Salt Mountain, making the Dominican Republic one of three sources of gypsum in the Caribbean. In 2003, the country produced 230,632 metric tons of gypsum and 2,906,699 metric tons of hydraulic cement. Limestone, marble, and sand and gravel were also produced in 2003. Substantial lignite deposits were found in the early 1980s.

Production of bauxite, traditionally the principal mining product, ceased in 1992. The Aluminum Co. of America (Alcoa) mined bauxite between 1959 and 1983, when it turned its concession over to the state. Production in 1991 dropped 92% from the previous year, as a presidential decree suspended mining operations at the largest mine, in response to increasing fears of deforestation, although reforestation of mined areas was in progress.

ENERGY AND POWER

The Dominican Republic's energy and power sector is marked by a lack of oil, natural gas and coal. Therefore, the country is heavily dependent upon imports to satisfy its fossil fuel needs. Although the country does have a small refining capacity, imports far outweigh production.

In the electrical power sector, the Dominican Republic's capacity for 2002 has been placed at 2.968 billion kW, with the bulk, 2.486 billion kW generated by fossil fuels. Hydroelectric generating capacity takes up the remaining portion at 0.482 million kW. Electric power production in 2002 totaled 10.863 billion kWh, of which: 9.957 kWh came from conventional thermal sources; 0.869 kWh came from hydropower sources; and 0.037 billion kWh from geothermal/other sources. Electric power consumption in 2002 stood at 10.103 billion kWh. The Dominican Electric Corp. (Corporación Dominicana de Electricidad) is responsible for all public production, sale, and distribution of energy. However, electrical power supply has been erratic. Power blackouts are frequent and can last up to 20 hours per day. Although the government has taken steps to remedy the power shortage, as of 2006, the reliability of the power supply remained a problem.

The Tavera Dam, with a capacity of 60,000 kW, was completed in 1972. The Sabana Yegua hydroelectric and irrigation complex, begun in 1974, opened in 1980. The Habo I coal-fired plant at Haina was inaugurated in 1984.

In 2002, crude oil imports totaled an average 39,500 barrels per day, with total oil product imports at 130,540 barrels per day. Distillate residual and gasoline imports were the top three refined products imported in that year at 29,880 barrels per day, 25,090 barrels per day and 18,670 barrels per day respectively. Consumption of refined oil products in 2002 stood at 126,150 barrels per day.

Under the terms of the San José Pact, the Dominican Republic buys oil at discount prices from Venezuela and Mexico. It imports liquefied natural gas (LNG) from Trinidad and Tobago. An LNG terminal that is part of a $400 million project built by AES Andres became operational at the beginning of 2003, but the associated 300 MW power plant was not expected to be completed until the summer of 2003.

Imports of coal in 2002 came to 257,000 tons of hard coal.

INDUSTRY

Including the processing of sugar, food processing represents more than half of the total industrial production. Dominican agriculture was hit hard during the late 1990s by droughts in 1996 and 1997, and a hurricane in 1998, but little effect was seen on the manufacturing sector. The construction sector realized high growth after the arrival of Hurricane Georges in 1998, including in housing, commercial construction, and public works projects. Small plants produce powdered and condensed milk, ceramics, aluminum furniture and fittings, concrete blocks, pipes and tiles, air conditioners, barbed wire, and other products.

Since 1990, free assembly zones have contributed more than 3.5% of the GDP, although growth in the free trade zones decreased in 2001. The most active sectors in this industry were related to the processing of clothes and textiles, tobacco, electronics, and shoes. The Dominican Republic was the seventh-largest supplier of textiles to the United States after Mexico, Hong Kong, Taiwan, Indonesia, and South Korea at the end of 2001. However, lack of demand in the United States for textiles resulted in layoffs in that sector and domestic manufacturing experienced no growth in 2001. The Dominican Republic has two oil refineries, with a total production capacity in 2002 of 49,000 barrels per day.

Industry represents a 31% of GDP, mainly focused on sugar refining, pharmaceuticals, cement, light manufacturing, and construction.

SCIENCE AND TECHNOLOGY

The Dominican Medical Association and the Dominican Sugar Institute have their headquarters in Santo Domingo. Ten colleges and universities offer degrees in engineering, basic sciences, medicine, and agriculture. In 1987–97, science and engineering students accounted for 35% of college and university enrollments.

DOMESTIC TRADE

Santo Domingo is the principal port and commercial center, while Santiago de los Caballeros is the market and distribution center for the Cibao Valley. Most importing and exporting firms are located in Santo Domingo. Importers ordinarily represent numerous foreign manufacturers.

Department stores and supermarkets are increasing in number, but most retail stores are specialty shops. Groceries, meat, and fish are sold in most cities through a large central market, by neighborhood stores, and by street vendors. Retail credit is granted by larger stores and automobile dealers.

The domestic economy has shifted to rely on the developing tourism, which accounts for about $1.5 billion in annual earnings. Remittances from Dominicans living abroad are estimated to be about $3 billion per year.

Much of the population still lives in rural areas—many as impoverished peasants or migrant workers, others as independent small-scale landowners, and a small minority as elite landowners. Moreover, rural life in the Cibao Valley generally diverges from that of the southeastern sugar plantations and other areas, and city life varies from the frenetic pace of Santo Domingo to the more relaxed, traditional character of Santiago and smaller towns.

FOREIGN TRADE

Numerous free trade zones make the Dominican Republic attractive to export-import businesses. After the passage of the 299 Law on 23 April 1969, the free zone sector started to develop in the Dominican Republic. The first to be installed was La Romana Free Zone, followed by San Pedro de Macorís Free Zone, which was created by law in 1971 and built in 1972. However, some FTZ businesses moved to Mexico after the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico, went into effect.

Clothing production brings in the majority of export revenues (32%), but the commodity market also supports the export of pig iron (7.8%), medical instruments (7.7%), sugar (5.6%), and electrical parts (5.1%). Dominican Republic imports include food, petroleum, cotton and fabrics, chemicals, and pharmaceuticals.

The Dominican Republic's most important trading partner is the United States (87% of export revenues); other markets include Canada, Western Europe, and Japan. The country exports freetrade-zone manufactured products (garments, footwear, etc.), nickel, sugar, coffee, cacao, and tobacco, and it imports foodstuffs, petroleum, industrial raw materials, and capital goods. On 5 August 2004, the Dominican Republic signed a Free Trade Agreement with the United States and five Central American countries to integrate into the US-Central American Free Trade Agreement.

BALANCE OF PAYMENTS

For more than 20 years prior to 1961, the Dominican Republic had no internal or external debt. In 1961, however, about us$70 million was taken out of the country by the Trujillo family and others. Political instability induced further net outflows of private capital throughout the 1960s. The nation's current accounts position

Current Account			867.1
Balance on goods		-2,444.0
Imports	-7,883.4
Exports	5,439.4
Balance on services		2,219.2
Balance on income		-1,243.6
Current transfers		2,335.5
Capital Account			…
Financial Account			-853.4
Direct investment abroad		…
Direct investment in Dominican Republic		309.9
Portfolio investment assets		-20.1
Portfolio investment liabilities		552.6
Financial derivatives		…
Other investment assets		-1,535.2
Other investment liabilities		-160.6
Net Errors and Omissions			-468.1
Reserves and Related Items			454.4
(…) data not available or not significant.

worsened during the 1970s, as trade deficits grew. Declines in export earnings in the 1980s brought shortages of foreign exchange. Large increases in imports and a sharp drop in commodity exports pushed the merchandise trade deficit to over $1.6 billion by the end of 1992, and $1.4 billion in 1998. Tourism (now the country's largest foreign exchange earner), expatriate remittances, and earnings from the free trade zones help to finance the trade deficit. Foreign direct investment as of the early 2000s was likely to remain high.

In 2004 the purchasing power parity of the Dominican Republic's exports was $5.2 billion while imports totaled $8.9, resulting in a trade deficit of -$3.7 million.

BANKING AND SECURITIES

The Central Bank of the Dominican Republic (Banco Central de la República Dominicana—BCRD) is the sole bank of issue. The state-owned Banco de Reservas, established in 1941, is the largest commercial bank in the country and acts as the fiscal agent and depository for the government. The Agricultural and the Industrial Credit Bank promotes the development of agriculture as well as industry by granting medium-term and long-term credit. The National Housing Bank (Banco Nacional de Vivienda) is a primary investor in low-cost housing. Other commercial banks include the Bank of Nova Scotia, Citibank, Banco Nacional de Credito, Banco Intercontinental (BANINTER), Banco Mercantil, Banco Osaka, Banco Global, Banco Hipotecario Dominicano (BHD), Banco Domingo del Progreso, Banco Popular Dominicano, and Banco Santa Cruz.

At the end of January 1996, the central bank tightened reserve requirements for lending based on new deposits and imposed limits on new lending to the commercial sector. The prime lending rate, which had fallen from 24% in December 1995 to 17% in 1996, was 18% in 1999. The exchange rate was devalued 9% in 1998, and continued to devalue through that year, but stabilized in 1999. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $2.4 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $7.9 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 13.47%.

Securities are traded on the Santo Domingo Securities Exchange, founded in 1991.

INSURANCE

Insurance firms are government-supervised and are required to furnish a bond to guarantee their obligations. Net premiums on life insurance are taxable, and the law requires that a certain proportion of the premiums collected must be invested locally. Workers' compensation and third-party automobile liability are compulsory insurance. The insurance market is regulated by the Superintendent of Insurance of the nation. In relation to the North American and European markets, the Dominican insurance industry has very low penetration and was among the lowest in Latin America, the result of relatively low per capita income and general lack of insurance awareness. In 2003, the value of all direct premiums written totaled $400 million, with nonlife premiums accounting for $368 million. Seguros Popular was the country's top nonlife and life insurer in 2003, with gross nonlife (including personal accident) and life insurance premiums written, totaling $98.2 million and $8.3 million, respectively.

PUBLIC FINANCE

Between 1968 and 1975, dependence on foreign loans and grants to finance the budget was substantially decreased, and by 1975 tax revenues amounted to about 12% of the GNP. In the late 1970s, this trend was reversed, with rising expenditures and increased assistance from abroad. Legislation was passed in 1997 to allow the privatization of state-owned enterprises, including public utilities,

Revenue and Grants	70,158	100.0%
Tax revenue	63,101	89.9%
Social contributions	2,974	4.2%
Grants	540	0.8%
Other revenue	3,544	5.1%
Expenditures	70,874	96.2%
General public services	9,911	14.0%
Defense	4,264	6.0%
Public order and safety	3,167	4.5%
Economic affairs	16,676	23.5%
Environmental protection	471	0.7%
Housing and community amenities	5,928	8.4%
Health	9,161	12.9%
Recreational, culture, and religion	…	…
Education	11,889	16.8%
Social protection	6,690	9.4%
(…) data not available or not significant.

the country's largest bank, an insurance company, and a number of factories. The government receives almost one-third of its revenues from taxes on imports, but the increasing use of the free trade zones diminishes indirect tax returns.

The US Central Intelligence Agency (CIA) estimated that in 2005 the Dominican Republic's central government took in revenues of approximately $5.3 billion and had expenditures of $5.4 billion. Revenues minus expenditures totaled approximately -$163 million. Public debt in 2005 amounted to 51.4% of GDP. Total external debt was $7.907 billion.

The International Monetary Fund (IMF) reported that in 2002, the most recent year for which it had data, central government revenues were rd$70.158 billion and expenditures were rd$70.874 billion. The value of revenues in US dollars was us$3.770 billion and expenditures us$3.637 billion, based on a market exchange rate for 2002 of us$1 = rd$18.610 as reported by the IMF. Government outlays by function were as follows: general public services, 14.0%; defense, 6.0%; public order and safety, 4.5%; economic affairs, 23.5%; environmental protection, 0.7%; housing and community amenities, 8.4%; health, 12.9%; education, 16.8%; and social protection, 9.4%.

TAXATION

Personal income tax rates in the Dominican Republic in 2002 were 15–25%. The personal exemption level was equal to 2.3 times the country's average income and the threshold for the highest income tax bracket was 5.8 times the average income (in contrast to 1985 when the highest bracket was 73% and the threshold was 413.5 times the average income). Since January 1995 business income has been taxed at a flat rate of 25%. The main indirect tax is the Dominican Republic's value-added tax (VAT) introduced in January 1983 with a standard rate of 16% as of 2005. Excise taxes are imposed on alcoholic beverages (25–45%), tobacco products (25–50%), nonalcoholic beverages, and petroleum products. There is also a technical education tax.

CUSTOMS AND DUTIES

The customs tariff is primarily a revenue-raising instrument, although it is occasionally used to protect local industry. In September 1990, a government decree simplified the tariff schedule to six categories, with seven tariff rates, ranging from 5–35%.

As of 2001, the maximum basic tariff rate stood at 20%, but there were also levied consumption taxes that generally range from 15–60% on "nonessential" goods. However, nonagricultural luxury goods such as perfumes, automobiles and jewelry are subject to additional consumption taxes that range from 15–80%, which are calculated on the CIF (cost, insurance, freight) price. There is also a 5% foreign exchange surcharge associated with import transactions. A 16% industrialized goods and services tax is also levied on processed agricultural and nonagricultural goods based upon the CIF price plus the amount paid for taxes and duties.

There are no free ports, but at least 19 industrial free zones have been established at locations including La Romana, San Pedro de Macorís, Santiago de los Caballeros, Baní, and Puerto Plata.

In 1998, the Dominican Republic helped to establish the Central American–Dominican Republic Free Trade Area (CADRFTA). The country also has an agreement with CARICOM and Western Hemisphere governments for a free trade area by 2005.

FOREIGN INVESTMENT

In August 1996, the Dominican congress passed the Multilateral Investment Guarantee Agreement (MIGA) and in September 1996, President Leonel Fernández signed the accord. The program was designed to encourage the flow of foreign private investment by mitigating political risks associated with a project. It also provides guarantees to foreign investors against the risk of transfer restriction, expropriation, and war and civil disturbance in the host country. In 1997, the government established the Office for Investment Promotion (OPI).

In 1998, foreign direct investment (FDI) inflows rose to nearly $700 million, up from $421 million in 1997 and then peaked at a record $1.3 billion in 1999. For 2000 and 2001, average yearly FDI inflow was a little over $1 billion. At the end of 2000, total FDI stocks were an estimated $5.2 billion, up from $2.9 billion at the end of 1998. In 1998, the tourist sector was the destination of 44.5% of FDI inflows, but in 1999, tourism accounted for only 20% while foreign investments in electricity became the single-largest destination for inward FDI, attracting 47.2%. In 2000, the tourist sector was the destination of 7.7% of FDI inflows, investments in electricity (29.5%), telecommunications (28.6%), and trade (16%) all ahead of it.

In 2000, the leading source of FDI was the United States (21%); other major sources in 2000 were Spain (20%), Canada (14%), and France (10%). Major foreign investors include GTE and Bank of Nova Scotia of Canada; Shell of Holland/England; and Central Romana, Philip Morris, Citibank, Esso, Texaco, and Colgate Palmolive of the United States.

The International Monetary Fund reported that foreign direct investment is permitted in all sectors except the disposal and storage of toxic, hazardous, or radioactive waste; activities that affect public health or the environment; and activities related to defense and security. Furthermore, it reported that both residents and nonresidents may hold foreign exchange accounts. Payments and transfers are subject to documentation requirements. Some capital transactions are subject to approval, documentation, or reporting requirements.

Foreign direct investment (FDI) was $309 million in 2003; it was projected to be about $100 million for 2004, much of it directed at the tourism sector, free trade zones, and telecommunication sector. The decision to privatize or "capitalize" ailing state enterprises (electricity, airport management, sugar) has attracted substantial foreign capital to these sectors.

ECONOMIC DEVELOPMENT

Caribbean Basin Initiative (CBI) and Generalized Systems of Preferences—government programs that allow the import of raw materials, equipment, and goods for re-export duty-free—benefit the economy. Tax exempt status for up to 20 years is also available. Duty-free access to the European common market was granted by joining the Lomé Convention in 1989, which also provides inexpensive financing for economic development projects. The addition of free trade zones greatly improved the level of industry in the country, but the NAFTA agreement transplanted some manufacturers to Mexico.

The 1998 hurricane caused at least $1.2 billion in damage; analysts estimated that the Dominican Republic's emergency aid would amount to 25% of its annual budget. The United States offered $47 million, and the European Union (EU) offered $50 million. Foreign aid may have successfully saved the small economy, and even improved it in 1999. Still, the state has a number of parastatals to privatize, and the fairly strict tariff regime has driven most investment capital into the free trade zones.

Rising foreign direct investment, particularly in the electricity, telecommunications, tourism, and free-trade zone sectors drove the average annual gross domestic product (GDP) growth rate from 2.25% in the early 1990s to 7.75% in the second half of the decade. Economic growth fell to 2.7% in 2001, however, in part due to the global economic downturn, and to the 11 September 2001 terrorist attacks on the United States. The unemployment rate rose that year, yet the inflation rate was reduced by half. The government maintained a strict fiscal policy, and tightened monetary policy in early 2002. There was a need for further social spending and investments in infrastructure, however.

Growth turned negative in 2003 with reduced tourism, a major bank fraud, and limited growth in the US economy (the source of about 85% of export revenues), but recovered in 2004 and 2005. Resumption of a badly needed IMF loan, slowed due to government repurchase of electrical power plants, was basic to the restoration of social and economic stability.

As of 2005, the Dominican Republic was a country on the mend following the 2003 banking scandal under former President Hipólito Mejía, when inflation spiked to 63% and GDP contracted by 0.4%. Since then, President Leonel Fernández has improved banking supervision, cut government spending, and introduced tax reforms. His administration passed tax reform and arranged a $600 million IMF standby arrangement in March 2005 to ease the country's fiscal situation. Although the economy continued to grow at a respectable rate, inflation and unemployment remained the two biggest challenges. Other challenges include the continuous flow of undocumented Haitians seeking refuge and an inefficient legal system in which a lack of resources and personnel keeps rule-of-law reforms from expediting judicial processes. Additionally, a deteriorated electrical distribution system, partly sustained by subsidies, was subject to frequent outages that hurt industry and tourism. Finally, the end of global quotas on apparel exports might allow China to increase its share of sales to the United States, cutting into exports from the Dominican Republic. The DR–CAFTA agreement could help the Dominican Republic to overcome such changes in global markets, but increases in the competitiveness of the economy are required.

SOCIAL DEVELOPMENT

A 2001 law created a three-part social security program to be implemented in stages until 2006. Individual accounts provide coverage for public and private sector workers, including Dominican citizens living abroad. The funding for old age, disability and survivorship programs comes from contributions from the insured and the government, with the bulk of responsibility on the employer. There is universal coverage for basic health care and pediatrics. Employers cover the total cost of workers' compensation. Family allowances are limited to unemployed single mothers with young children.

Women continue to have lower economic and social status than men. They are often paid less for similar work and occupy few top leadership positions. Employers avoid hiring pregnant women, and some administer pregnancy tests to job applicants. Divorce is easily obtainable by either spouse and women can own property in their own name. Domestic violence and sexual harassment are common. The first shelter for battered women opened in 2004. Rape is a serious and grossly underreported problem.

Haitian immigrants, many of whom are low paid agricultural workers, face considerable discrimination. An estimated half million live under harsh conditions in special camps for sugarcane workers. Reports of mistreatment of Haitian migrant workers continue. Documented human rights violations include police brutality, arbitrary detention, and mistreatment of suspects in custody.

HEALTH

In 2005, average life expectancy was 71.44 years; in the same year the infant mortality rate was 29.37 per 1,000 live births. The overall mortality was estimated at 4.7 per 1,000 people. Approximately 64% of women with partners (ages 15 to 49) used contraception.

Modern aqueducts, drainage systems, and garbage disposal plants have been constructed in the principal cities. The National Water Supply and Sewerage Institute was established in 1962 and the National Rural Water Service was formed in 1964. In 2000, an estimated 79% of the population had access to safe water, compared with 37% in 1970, and 71% had adequate sanitation. In 2000, however, approximately 11% of children under five years of age were considered to be malnourished and as of 1999, 14% of all births were low birth weight. As access to health care has improved, so has the under-5 mortality rate, which in 1996 was 56; in 1980 it was 94. In 1999, there were 135 cases of tuberculosis per 100,000 people.

The country immunizes over 80% of children up to one year of age against tuberculosis, diphtheria, pertussis, and tetanus, and polio. Major causes of death between 1990 and 1994 were: communicable diseases (27 per 100,000), malignant neoplasms (28 per 100,000), and injuries (30 per 100,000). As of 1999 total health care expenditure was estimated at 4.8% of GDP. Approximately 80% of the population has access to health care services. As of 2004, there were an estimated 188 physicians, 184 nurses, and 84 dentists per 100,000 people. The HIV/AIDS prevalence was 1.70 per 100 adults in 2003. As of 2004, there were approximately 88,000 people living with HIV/AIDS in the country. There were an estimated 7,900 deaths from AIDS in 2003.

HOUSING

Rapid population growth and migration to urban areas have combined to create an increasingly serious housing shortage. Destructive hurricanes have not helped the situation either. The National Housing Institute and the National Housing Bank, both established in 1962, have been responsible for a great deal of construction, including about 10,000 homes during the period 1966–72. In the period 1975–78, construction activity slowed down, but a 1979 hurricanes prompted a construction boom—not, however, to create new housing but to replace units that had been destroyed by the storms. The Guzmán government promoted the building of low-cost housing at a rate of about 6,000 units a year. President Jorge Blanco pledged in 1982 that 25,000 low-cost houses would be built annually during his administration and President Balaguer, after he returned to office in 1986, also built low-cost housing, though at a far slower pace than announced.

Hurricane Georges in 1998 damaged about 170,000 homes or about 10% of the nation's entire housing stock. About 49,000 of these homes were completely destroyed. With assistance from foreign programs such as USAID, the government was able to complete 2,250 new homes and make repairs and utility upgrades to over 1,000 others.

At the 2002 census, there were about 2,445,315 dwellings in the country; this figure does not include institutionalized dwelling spaces. Most housing units are detached houses; accounting for 80% of all housing in the census. Concrete blocks, cement, and wood are the most frequently used construction materials for dwellings.

EDUCATION

The foremost educational objective in recent years has been the enrollment of the entire population in the 5–14 age range. Nine years of education is compulsory. Primary education lasts for six years. Students have two choices for secondary education. The traditional system covers a six-year course of study with two years of general education followed by a four-year track of academic, technical, vocational, or teacher-training studies. The reform system also covers six years, with four years of science based studies and two years of specialization.

In 2001, about 35% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 96% of age-eligible students. The same year, secondary school enrollment was about 36% of age-eligible students (30% for boys and 41% for girls). It is estimated that about 93% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 39:1 in 2003; the ratio for secondary school was about 31:1.

The state-run Autonomous University of Santo Domingo, founded in 1538 and the oldest in the hemisphere, has suffered from a lack of resources. There are four private universities, one technological institute, four colleges, and seven schools of art and music. In 2003, about 34% of the tertiary age population were enrolled in some type of higher education program (26% men and 43% women). The adult literacy rate for 2004 was estimated at about 87.7%.

As of 2003, public expenditure on education was estimated at 2.3% of GDP, or 12.4% of total government expenditures.

LIBRARIES AND MUSEUMS

There are about 130 libraries located throughout the country. The library of the University of Santo Domingo is the most important, with over 105,000 volumes. The Pedro Henríquez Ureña National Library, founded in Santo Domingo in 1970, had a collection of over 154,000 volumes in 2002. In general, public library collections are few and small, mostly containing only a few hundred books. Exceptions are the public libraries in Santo Domingo and Baní, with holdings of about 35,000 volumes and 38,000 volumes, respectively.

All of the leading museums are in and around Santo Domingo. The Museum of Dominican Man (formerly the National Museum) houses 19,000 pre-Columbian, colonial, and contemporary exhibits relating to the country's history. The Gallery of Modern Art promotes the music, painting, sculpture, and poetry of both Dominican and foreign artists and writers. A new complex at the Plaza of Culture houses several museums, the National Library, and the National Theater. The Alcázar de Colón is the 16th-century home of the Columbus family; the reputed tomb of Christopher Columbus is in the Cathedral of Santa María la Menor. The Zoological and Botanical Garden in Santo Domingo is unique because of its natural setting and grottoes. Ponce de Leon's fort was declared a historic site in 1972 and is maintained as a museum.

MEDIA

The Dominican Telephone Co. operates the domestic telephone system, and the government controls domestic telegraph service. The larger cities have automatic telephone exchanges, and most of the telephones are on an automatic dial system. In 2003, there were an estimated 115 mainline telephones for every 1,000 people. The same year, there were approximately 271 mobile phones in use for every 1,000 people.

In 1998 there were 120 AM and 56 FM radio stations as well as about 25 television stations, of which the government-owned Radio-Televisión Dominicana is the most important. Many privately owned radio and TV stations broadcast differing political points of view, as do the many independent newspapers and periodicals. In 2000 there were 97 television sets for every 1,000 people. In 2003, there were about 181 radios for every 1,000 people. About 64 of every 1,000 people have access to the Internet as of 2003.

The newspapers of the Dominican Republic are rated by the Inter-American Press Association as among the freest in Latin America. The leading daily is Listín Diario (circulation 88,000 in 2004). Other papers of importance also published in the capital are El Nacional (circulation 45,000 in 2002), Hoy (40,000 in 2004), Ultima Hora (40,000 in 2004), and El Caribe, an independent morning daily (circulation 10,000 in 2004). Of the dailies published outside the capital, La Información of Santiago (circulation 15,000 in 2004) is the best known.

The legally provided freedom of speech and the press are said to be generally supported in practice by the government.

ORGANIZATIONS

Consumer associations, mainly for low-income groups, deal in basic foods such as rice, plantains, potatoes, and beans. The Confederation of Employers of the Dominican Republic and the National Council of Businessmen are the principal employers' organizations. There are chambers of commerce in Santo Domingo and other large towns. There are a couple of teachers' unions/associations as well as associations for a number of other professions.

The Asociacion Medica Dominicana promotes research and education on health issues and works to establish common policies and standards in healthcare. There are also several associations dedicated to research and education for specific fields of medicine and particular diseases and conditions.

The Dominican Revolutionary Youth, with membership of about 150,000, is the youth wing of the Dominican Revolutionary Party (PRD), which is affiliated to the Socialist International. The Federation of Dominican Students is the national students' union. The Dominican Scout Associations and the Girl Guides have active youth programs. There are also number of youth organizations with religious affiliations. Sports associations promote competition in a number of favorite pastimes, including squash, tennis, and tae kwon do. National women's organizations include the Research Center for Feminist Action and You, Woman.

Volunteer service organizations, such as the Lions Clubs International, are also present. There are national chapters of the Red Cross Society, UNICEF, Habitat for Humanity, and Caritas.

TOURISM, TRAVEL, AND RECREATION

Although the Dominican Republic offers fine beaches and historical sites as well as quality hotel facilities, it had no organized tourist industry to speak of until 1967, and received no more than 45,000 visitors per year. Increased political stability made the country more attractive to tourists, and by 1973 the number of foreign visitors had grown to 182,036. By 1997 the Dominican Republic had 38,585 hotel rooms with an occupancy rate of 76%, and tourism was a mainstay of its economy. In 2003 approximately 3,268,182 tourists arrived in the Dominican Republic. There were 56,378 hotel rooms with 140,945 beds and a 72% occupancy rate. The average length of stay was 9.5 nights.

Resort centers—La Romana, Puerto Plata, Samaná, and Playa Grande—are the main attraction. Baseball is the national sport. Other popular pastimes include basketball, boxing, tennis, golf, hunting, fishing, and scuba diving. The Juan Pablo Duarte Olympic Center is one of the best-equipped sports facilities in the Caribbean. Citizens of the United States and Canada are not required to carry a passport; they may purchase a tourist card upon entering the country. Other visitors require a valid passport, and may require visitor visas.

In 2004, the US Department of State estimated the daily cost of staying in Santo Domingo was $189. Daily expenses in La Romana were $267.

FAMOUS DOMINICANS

Juan Pablo Duarte (1813–76), national hero of the Dominican Republic, was the leader of the famous "La Trinitaria," along with Francisco del Rosario Sánchez (1817–61) and Ramón Matías Mella (1816–64), which proclaimed and won independence from Haiti in 1844. Emiliano Tejera (1841–1923) and Fernando Arturo de Merino (1833–1906), first archbishop of the Dominican Republic, were noted statesmen.

Rafael Leonidas Trujillo Molina (1891–1961) was the dominant figure in the political life of the country from 1930 until his assassination on 30 May 1961. He served four times as president and was commander-in-chief of the armed forces. Joaquín Balaguer (1909–2002) was a prominent political figure in the Dominican Republic. Juan Bosch (1909–2001), founder of the leftist PRD and later of the PLD, served for seven months as president in 1963.

Juan Bautista Alfonseca (1810–75), the father of Dominican music, was the first composer to make use of Dominican folklore. José Reyes (1835–1905), musician and soldier, wrote the music for the national anthem. José de Jesús Ravelo (1876–1954) composed the oratorio La Muerte de Cristo, which has been performed yearly since 7 April 1939 at the Basílica de Santa María la Menor on Good Friday. Other prominent Dominican musicians are Juan Francisco García (1892–1974), Luis Emilio Mena (1895–1964), and Enrique de Marchena (1908–1988).

In sports, Juan Marichal (b.1937) achieved fame in the United States as a baseball pitcher, as has Pedro Martínez (b.1971). Sammy Sosa (b.1968), a star home-run hitter, won the National League Most Valuable Player Award in 1998. Outfielder and slugger Manny Ramírez (b.1972) won the 2004 World Series Most Valuable Player Award for leading the Boston Red Sox to its first World Series victory in 86 years.

DEPENDENCIES

The Dominican Republic has no territories or colonies.

BIBLIOGRAPHY

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

Chester, Eric Thomas. Rag-Tags, Scum, Riff-Raff, and Commies: The U.S. Intervention in the Dominican Republic, 1965–1966. New York: Monthly Review Press, 2001.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Metz, Helen Chapin, (ed.). Dominican Republic and Haiti: Country Studies. Washington, D.C.: U.S. Government Printing Office, 2001.

Pacini Hernandez, Deborah. Bachata: A Social History of a Dominican Popular Music. Philadelphia: Temple University Press, 1995.

Safa, Helen Icken. The Myth of the Male Breadwinner: Women and Industrialization in the Caribbean. Boulder, Colo.: Westview Press, 1995.

Wiarda, Howard J. and Michael J. Kryzanek. The Dominican Republic, a Caribbean Crucible, 2nd ed. Boulder, Colo.: Westview Press, 1992.